Present research investigated Japanese trade in services using New Balance of Payment statistics (Bank of Japan, reviced from January, 1996) and Input-Output Table (1985 and 1990) Major findings are as follows :
(1) Japanese trade in services revealed large deficits in 1991-1994 period. The Largest deficit was in travel account.
(2) Only item which showed surplus was construction in the same period.
(3) Analysis using Input-Output Table revealed increase in trade (both imports and exports of private services and financial services.
(4) While Japanese manufacturing industries became more competitive between 1985 to 1990. many service industries - private service, medical insurance, advertisment lost competitiveness.
(5) Around 80 % of Japanese services is traded as embodied services.
